Siacoin is the future of a decentralized cloud storage system.
With scalability issues in some of the most popular and widely used cryptocurrencies in the market like Bitcoin and Ethereum, the research and development wing of the Blockchain industry must put their innovative minds to use, and try to find out an alternative currency without the current drawbacks.
If they fail to do so, the aim of introducing a globalized cryptocurrency which would serve the requirements of every individual without any delay would just be left as a dream itself. Due to the open-source code nature of the cryptocurrencies, it has been made easier for the developers to apply their concept and develop a whole new cryptocurrency.
It is highly stressful for people to keep shifting to new cryptocurrencies, even though it might be better than the previous version. It is also evident in one way, as significant changes take their own time for their widespread adoption. Let us understand what the need for Siacoin was?
Need for Siacoin project
In the world of social media, where everyone is obsessed with clicking pictures, the storage has always been a catch. Therefore the Siacoin project aims at developing a decentralized cloud storage system where the participants on the Blockchain would lend out their unused storage space for its community members to use.
The whole process is made possible through the application of smart contract functionality, where the conditions are automatically enforced through them. The client node which stores the data, however, would be required to repeatedly submit a Proof of storage to ensure that the information is safe on the client’s computer.
Siacoin project’s primary goal is to develop an affordable, reliable, and highly secure form of data storage without any fault-tolerant features. The current prices charged by the centralized cloud storage services is skyrocketing. Hence the project cuts down the cost by several times, adding on to that providing more security and reliability through its blockchain nature has improved the value of the coins. This brings us to the question of is Siacoin a good investment? Let us take a look at the advantages of Siacoin to answer this.
Through the Cryptographic principles applied by the Blockchain technology, the data will be completely safe and secure in the makeshift client servers. As the Siacoin concept is decentralized, a single point of failure which existed in the case of the traditional centralized storage cloud storage facilities is wholly avoided. The Siacoin cryptocurrency project is highly similar to that of Bitcoin, where the crypto coin Siacoin is inherently meant to be deflation-proof. The cryptocurrency project is also well known as the “Airbnb of the hard drives” as it would give a significant blow to projects like Google Drive, Dropbox, Amazon A3, etc.
As the data stored on a particular node would be encrypted and can only be unlocked by using a private key, even the Siacoin network wouldn’t be able to decipher the content. To direct the respective advertisement traffic towards you, user around the world who needs to use the technology must become a part of the network first.
There is a minimum requirement for the amount of cryptocurrency coin one needs to hold to rent out space towards the Blockchain network. Currently, it is 2000 Siacoins.
This holding of coins ensures the adoption of the cryptocurrency, but due to technical ambiguity among people, it is hard for it to become a mainstream obsession. It is always witnessed that nature somehow balances itself, and in the case, in the future, if it is accepted widely, then the price of Siacoin would impede, making it unaffordable.
Is Siacoin a good investment?
As Siacoin provides a fault-tolerant decentralized cloud storage computing facility at enormous cheaper rates than the current market price, it would undoubtedly be impressed by a large number of people. Even the value of the coin is bound to increase due to its increasing adoption.
Hence instead of asking is Siacoin a good investment, it is time to invest in the asset that one must be incorporating into the portfolio for the year 2018. It is in some way similar to BitTorrent, the most powerful file sharing mechanism which couldn’t be shut down by the government due to its decentralized nature.
The overall working model of Siacoin seems to be highly promising, but it is the user’s money and their decision to invest in the cryptocurrency or not.